Greg Salamanca
New Member
- 1
I'm curious as to what the folks in here think a proper sales price would be for the agency I work for. I know that sales prices vary wildly depending on numerous factors so I thought I'd spell out some details and get opinions if you'll all be so kind:
Total yearly book premium: 2,300,000.00
100% personal lines
58% of business homeowners/dwelling fires/renters (agency mainly wrote for 2 large mortgage companies and autos only came from cross selling these)
40% of business auto
2% of business "other" umbrella, boat etc
85-88% avg yearly retention
Top 5 carriers: Safeco, Travelers, Encompass, CSE (regional), Progressive
Yearly gross estimate 280-300k
Now I believe because the agency has good retention, very little non standard auto stuff and a large number of homeowners polices that the book/agency sales price would be a bit higher than the average commercial shopping center 90% non standard auto agency.
Finally, in case one wonders why I ask is I have heard the principal musing about leaving the business and I was fancying making an offer to buy. I don't want to shoot myself in the foot by throwing out a number too high and I know the principal will not engage unless I come up with a number first.
Total yearly book premium: 2,300,000.00
100% personal lines
58% of business homeowners/dwelling fires/renters (agency mainly wrote for 2 large mortgage companies and autos only came from cross selling these)
40% of business auto
2% of business "other" umbrella, boat etc
85-88% avg yearly retention
Top 5 carriers: Safeco, Travelers, Encompass, CSE (regional), Progressive
Yearly gross estimate 280-300k
Now I believe because the agency has good retention, very little non standard auto stuff and a large number of homeowners polices that the book/agency sales price would be a bit higher than the average commercial shopping center 90% non standard auto agency.
Finally, in case one wonders why I ask is I have heard the principal musing about leaving the business and I was fancying making an offer to buy. I don't want to shoot myself in the foot by throwing out a number too high and I know the principal will not engage unless I come up with a number first.